Global employment briefing: Italy, October 2016

• Italy

• Other

30-09-2016

New collective bargaining agreement for executives working in the trade sector

On 21 July 2016, the new Collective Bargaining Agreement for executives working for companies in the trade sector was signed (the new CBA).

This development follows the negotiation of the new Collective Bargaining Agreement for executives working in the manufacturing sector which, among other changes, reduced the periods of notice and compensation applicable in cases of unfair dismissal.

In a similar vein, the new CBA also appears more favourable to employers than to executives.

The principal changes brought about by the new CBA are related to:

• executive entitlement on termination
• executive entitlement in the event of sickness absence, and

• revised social security contributions

Entitlement on termination

The new CBA modifies the rules concerning dismissal with effect from 1 September, 2016. In consequence, sums payable to managers on dismissal are reduced, especially for executives with short service, so that notice periods and "supplementary indemnities” are now lower than were provided under the previous CBA.

Sickness absence changes

In the event of sickness or injury on the part of an executive, employment is protected and they remain entitled to full salary for a protected period, known as the “periodo di comporto”). Importantly, under the new CBA, this period of protection is reduced from 12 to 8 months.

Reduced levels of social security contributions

Under the new CBA, levels of social security contributions are reduced for companies which hire executives:

•  below the age of 48 years or unemployed executives older than 55 years on an indefinite contract, or
• with a fixed term contract of longer than one year, or
• whose gross annual salary is below €65.000 (from 1st October, 2016).

The new CBA will remain in force until 31st December, 2018.